By Srinivas Chowdary Sunkara // petrobazaar // 8-4-18.
Oil prices seesawed with equity amid trade tariffs
During the week, The news of U.S allegedly considering fresh tariffs on China's imports caused stocks futures to drop, spilled over oil markets which weighed on oil prices. EIA reported fresh drawings in crude stocks, supported oil prices. U.S production numbers were inched up, caused a threat to OPEC pact. Both U.S oil imports and exports were increased and stocks at major U.S storage hubs were improved.
On Friday, Baker Hughes reported an additional rigs of 11 Nos into U.S drilling activity. Oil rig count stands at 808Nos. which was raised by 136 Nos from previous year. U.S Job growth eased in March and unemployment is steady at 4.1%. The U.S manufacturing sector has posted a solid job gains over the past year, and that growth continued in March.
Oil price update
On Friday, U.S oil prices dropped by $1.48 with 2.33% change to close at $62.06 per barrel on Nymex. Brent futures for June delivery slipped by $1.22 or 1.79% at $67.11 a barrel on London based ICE futures Europe exchange. Both the oil futures lost 4.5% week on week.
No job growth and steady unemployment rate in U.S sends a mixed signal as manufacturing sector fared well. Additional oil rigs are considered as a bearish news since it is indicating a surge in production. Any fierce counter strike by China with fresh trade measures will shake the equity markets in turn oil markets on Monday. I feel that Bears will be active on Monday.
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